I bought 1000 shares of Square (SQ) on 9\/1 at $169. And I bought 1000 Shares of Peloton (PTON) on 10\/2 at $107.75. Both of these stocks have done great! I have brought in a lot of premium money on both for a long time now.<\/p>\n
Today there is some optimism in the market because of President Trump’s COVID treatment success and for a possible stimulus package soon.<\/p>\n
I just sold Calls with SQ and PTON for really good premiums. I took a different approach with each trade. Let’s look at SQ first.<\/p>\n
With the stock at $176.90 and up over $7 on the day. I sold an In-the-Money Call. I sold the $175 Call. I sold this Call for a few reasons. I’ll start with the Relative Strength Index (RSI). With the stock up so much this morning and the RSI above 70 I felt there could be a little pull back by the end of the week.<\/p>\n
I know this is a hot stock, but with the election coming I would like to get assigned. Even though it could go higher if we get the stimulus.<\/p>\n
This is an In-the-Money Call looking at today’s prices. The stock was at $176.90 and I sold the $175 Call. But remember, I bought the stock at $169. If assigned I make a lot of money on the stock sale.<\/p>\n
Let’s take a look at the premium. For the $175 Strike Price I received a premium of $6.50. Yes, that’s $6500 for a 5 day option. If assigned this will be a huge gain for 1 trade.<\/p>\n
Sell to Open 10 SQ 10\/9\/20 $175.00 C @ $6.50 (+$6500)<\/strong><\/p>\n This trade gets a Risk Factor 1<\/strong>.<\/p>\n Next I have PTON. I bought the stock on Friday to cover a $108 Naked Call about to expire. The stock moved above my Strike Price late in the day and when it dropped to $107.75 I had to buy the shares to cover. It worked out that the stock closed below the $108 and the Call expired. I didn’t get a Call sold on Friday, so with the stock up today, I just got one sold.<\/p>\n This is another great trade! With the stock in the $109 area I sold the $109 Call. I received another great premium of $3.50 for $3500.<\/p>\n Sell to Open 10 PTON 10\/9\/20 $109.00 C @ $3.50 (+$3500)<\/strong><\/p>\n This trade also gets a Risk Factor 1<\/strong>.<\/p>\n The different approach I took on these 2 trades is because SQ is up so much today. As I write it’s up over $8. Because of the desire to get assigned I went with the In-the-Money Call.<\/p>\n With PTON I went with the At-the-Money Call. This is a lower priced stock so if I don’t get assigned there’s less at risk. Plus PTON is a COVID stock. I think it has more potential, near term. PTON also has a higher Implied Volatility (IV). Being a COVID stock I feel it has better upside potential.<\/p>\n I already have big money coming in with premiums this week. Last week I sold a Call with NVDA that is expiring this Friday. Take a look at the 3 big premiums I have this week.<\/p>\n NVDA – $5200<\/strong><\/p>\n SQ – $6500<\/strong><\/p>\n PTON – $3500<\/strong><\/p>\n These 3 trades alone is $15,200 in premiums. This is without assignment!<\/p>\n Successful trading,<\/p>\n Steve<\/p>\n The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" I bought 1000 shares of Square (SQ) on 9\/1 at $169. And I bought 1000 Shares of Peloton (PTON) on 10\/2 at $107.75. Both of these stocks have done great! I have brought in a lot of premium money on both for a long time now. Today there is some optimism in the market because […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-8981","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-2kR","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/8981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8981"}],"version-history":[{"count":4,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/8981\/revisions"}],"predecessor-version":[{"id":8990,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/8981\/revisions\/8990"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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